HAL Stock: Hindustan Aeronautics Limited (HAL), a key player in India’s defense manufacturing sector, is a government enterprise specializing in aeronautical machinery. With a robust order book of ₹94,000 crore and ambitious plans to scale this to ₹1,20,000 crore by the fiscal year-end, HAL has positioned itself as a cornerstone of India’s self-reliant defense initiative.
According to Tradebrains, HAL’s current market capitalization stands at ₹2,81,220 crore. The stock is trading at ₹4,205 per share, reflecting a 0.72% dip from the previous close of ₹4,235.55. Despite this, the stock offers value, trading at a 26% discount from its 52-week high of ₹5,675. Over the past year, HAL has delivered an impressive return of 47%, underlining its growth trajectory.
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HAL designs, manufactures, and maintains aircraft, helicopters, and aerospace components. With over 20 production facilities and 10 R&D centers across seven states, HAL combines innovation and efficiency. Its collaborations with global giants like Rolls Royce, Honeywell, and Israel Aerospace highlight its international relevance. Notably, HAL’s partnership with Rolls Royce focuses on Adour engine manufacturing and maintenance, serving both Indian and global defense customers.
The company’s future order pipeline, valued between ₹1,60,000 crore and ₹1,70,000 crore, promises growth. Anticipated contracts for projects like the LCA Mark 1A and Advanced Light Helicopters signal a strong outlook. To support expansion, HAL plans a CAPEX investment of ₹14,000–15,000 crore over five years, averaging ₹3,000 crore annually for capacity augmentation and greenfield projects.
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HAL is financially robust, with revenue growing by 7% year-on-year to ₹6,519 crore in Q2FY25. Its net profit rose from ₹1,237 crore to ₹1,510.48 crore in the same period. The company boasts an impressive ROE of 27.3% and ROCE of 25.29%. Additionally, HAL is debt-free, further solidifying its financial stability.
With a strong foundation, growth-oriented strategies, and a focus on innovation, HAL presents itself as a compelling addition to watchlists for investors seeking exposure to India’s defense and aerospace sector.
